Stock Spotlight: APA Group (ASX:APA)
This week's Stock Spotlight is ASX-listed APA Group.
About APA Group.
APA Group engages in the energy infrastructure business in Australia. The company operates through Energy Infrastructure, Asset Management, and Energy Investments segments. It operates gas transmission pipelines and interconnected grids, gas-fired power stations, electricity transmission interconnectors, solar and wind farms, and battery energy storage systems, as well as gas storage, processing, and compression facilities. The company also has interests in approximately 15,000 kilometers of gas transmission pipelines; approximately 29,500 kilometers of gas mains and pipelines; and 1.5 million gas consumer connections. It also provides asset management and operating services to its energy investments and third parties; and invests in energy infrastructure.
Source: Yahoo Finance
Key Stats
Key Stats
Source: Yahoo Finance, ASX. Data as of 20/09/24.
Price Performance

Growth Potential
- Attractive dividend yield after material de-rating in APA’s share price.
- Current regulatory uncertainty could provide upside risk to the share price.
- High quality assets, which are difficult to replicate and important to the energy supply in Australia.
- Attractive and growing distribution yield – long history of growing distribution levels and it remains a key target of APA’s management team.
- Highly credit worthy customers.
- Organic growth pipeline of $1.8bn.
- Growth through acquisitions.
- Diversified customer base by sector.
- Largest owner of gas transmission pipelines in Australia.
- Opportunity to grow its renewable business.
- Management announced their ambition to achieve net zero operations emissions by 2050.
Key Risks
- Negative market/investor sentiment towards “bond-proxies”.
- Future regulatory changes by pipeline regulators.
- Distribution is cut due to balance sheet issues.
- Infrastructure issues such as explosions or ruptures.
- Shorter contract terms on existing capacity.
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Disclaimer: This article does not constitute financial advice nor a recommendation to invest in the securities listed. The information presented is intended to be of a factual nature only. Past performance is not a reliable indicator of future performance. As always, do your own research and consider seeking financial, legal and taxation advice before investing.





